plastech autosafe

17Th DECEMBER, 2013

PLASTECH AUTOSAFE (PVT) LTD Production & Operations Management REPORT

INSTITUTE OF BUSINESS MANAGEMENT


ACKNOWLEDGEMENT

All praises and thanks are for Almighty Allah Who is the source of all knowledge and wisdom endowed to humankind and to the humanity as a whole. We would particularly like to thank our course facilitator Dr. Irshad Khan for many insights that he provided throughout this course. Without the Encouragement, Guidance and support of our Teacher the completion of this report would not have been possible.

The encouragement and assistance of our parents and friends provided us a great deal of wisdom towards the completion of this report.



EXECUTIVE SUMMARY

This report presents detailed information on the production and operations at Plastech Autosafe Private Limited based on the detail interview with Mr. Umer Farooq (Manager Production Planning & Material Control [PPMC]).

Since Plastech Autosafe formation in 1983, Plastech Auto safe, has been a leader in the design, development and manufacture of quality parts and automotive accessories in Pakistan.

The content provides an introduction to the workings of the company and focuses on the processes followed at the company. Products transacted suppliers, procurement from overseas and local supplies, inventory, warehouses and distribution network has also been discussed.

The process starts with Schedule Received from customers, planning for Raw Material Ordering. Imported material inventory of about 3 months is maintained as safety stock. Some raw materials are procured locally. Transport operations are managed by the company itself with the help of outsourcing within agreement.

Complete operations are recorded and maintained by the supply chain or PPMC manager of the company which enhances effective and efficient operations and provides a competitive edge.



CONTENTS1. INTRODUCTION:.........................................................................................................................5

1.1. PRODUCT RANGE:.............................................................................................................51.2. PLASTECH AUTOSAVE CUSTOMERS:...........................................................................6

2. PRODUCTION PLANNING & MATERIAL CONTROL (PPMC) MISSION:.........................7

2.1. SUPPLY CHAIN MISSION:.................................................................................................72.2. LOGISTICS MISSION:.........................................................................................................72.3. PROCUREMENT MISSION:...............................................................................................7

3. HIERARCHY OF SUPPLY CHAIN OR PPMC:.........................................................................84. SUPPLY CHAIN OR PPMC AT PLASTECH AUTOSAFE:......................................................9

4.1. SUPPLY CHAIN PROCESS:.............................................................................................10

4.1.1. PLAN:...........................................................................................................................10

4.1.2. SOURCE:.....................................................................................................................10

4.1.3. MAKE:...........................................................................................................................10

4.1.4. DELIVER:.....................................................................................................................10

4.1.5. BUY:..............................................................................................................................10

4.2. PROCESS FLOW OF SEAT BELTS AT PLASTECH AUTOSAFE:.............................11

4.3. INTERNAL SUPPLY CHAIN OF PLASTECH AUTOSAVE:..........................................12

4.4. DAILY PRODUCTION PLAN AT PLASTECH AUTOSAFE..........................................13

4.4.1. PRODUCTION SEAT BELTS BY VARIOUS PROCESSES:......................................13

4.4.1. PRODUCTION SEAT BELTS BY VARIOUS PROCESSES:........................................14

4.5. PLSTECH AUTOSAFE NETWORK DESIGN:................................................................15

5. RECOMMENDATIONS:............................................................................................................16

6. REFERENCES:............................................................................................................................16



1.INTRODUCTION:

Plastech Auto safe formation in 1983, Plastech Auto safe, has been a leader in the design, development and manufacture of quality parts and automotive accessories in Pakistan. Plastech is associated with some of the world's best automotive systems

Autoliv Australia Pvt. Ltd., a subsidiary of Autoliv AB. Sweden Automotive seating fabric from Melba Industries, Australia Automotive seating leather from Howe & Co. Australia Alloy wheels from ROH Wheels, Australia Child seats from Klippan Ltd. UK

Plastech Pakistan is an associated facility, which manufactures and supplies emblems, decals and side strips to assemblers and the aftermarket. They have a state of the art computerized decal cutter, and printing techniques to meet with all future automotive trends and requirements. Most of the technology

used for decals is in collaboration with 3M.Their commitment is to retaining this leadership role in innovation, design, new product development, quality and service has been recognized by the International Standards Organization. Plastech is ISO 9002 accredited and working towards QS 9000 certification.

Plastech is constantly developing and sourcing new products for each of its core categories: Seat belts, Interior fabrics, Alloy wheels, Child seats. We are also continually refining and developing our accessories line.

1.1. PRODUCT RANGE:

Seat belts & occupant safety systems Automotive interior fabrics Automotive seating leather Alloy wheels Child seats Self adhesive decals for automobiles


http://www.klippan.co.uk/

http://www.roh.com.au/

http://www.howe.com.au/

http://www.austrimtextiles.com.au/shop/melba_industries/default.asp

http://www.autoliv.com/


The top vehicle manufacturers rely on components, systems, and modules from Plastech Systems. Their extensive product portfolio, backed by decades of experience, provides manufacturers with the tools they need to deliver the vehicles-and the vehicle features-consumer's demand. While our entire product functions optimally on their own, Plastech Auto safe’s systems integration expertise delivers even more.

As vehicles become increasingly sophisticated, systems integration plays a pivotal role in successful manufacturing. We offer manufacturers greater design and engineeringflexibility, simplified assembly, increased reliability, and improved cost efficiencies.

Technology has brought new levels of performance, safety, and convenience to carsand other consumer products. Consequently, consumers expect more.

1.2. PLASTECH AUTOSAVE CUSTOMERS:

As a responsive partner, Plastech helps their customers deliver products that will succeed in

the marketplace. Plastech is not simply a supplier. They build collaborative relationships that enable them to provide innovative solutions to unique challenges. With the evolution oftechnology, Plastech will continue to deliver smart solutions and exceed expectations. Plastech's customers include every major manufacturer of light vehicles in Pakistan. These customers include:

Indus Motors Co. Ltd. (Manufacturers Of Toyota And Daihatsu Cars) Pak Suzuki Motor Co. Ltd. Honda Atlas Cars Pakistan Ltd. Ghandhara Nissan Ltd. Volvo Pakistan Ltd. Dewan Farooq Motors Ltd. (Assemblers Of Hyundai & Kia Vehicles) Adam Motor Company Ltd.



2.PRODUCTION PLANNING & MATERIAL CONTROL (PPMC) MISSION:

2.1. SUPPLY CHAIN MISSION:

“To efficiently create relationship with suppliers, and distributors, so that product is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying customer.”

2.2. LOGISTICS MISSION:

“Aim by moving the material needed by production into the company and moving finished goods to the customer at right time with lowest cost.”

2.3. PROCUREMENT MISSION:

Low production costs Fast and on-time deliveries High quality products and services Flexibility



3.HIERARCHY OF SUPPLY CHAIN OR PPMC:


SUPPLY CHAIN OR

PPMC

WAREHOUSING

TRANSPORTATION

INBOUND TRANSPORTATION

OUTBOUND TRANSPORTATION

INVENTORY CONTROL

PROCUREMENT

SOURCING

PURCHASING

SCHEDULING


4.SUPPLY CHAIN OR PPMC AT PLASTECH AUTOSAFE:

The Supply Chain Management Program integrates topics from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Successful supply chain management coordinates and integrates all of these activities into a seamless process. It embraces and links all of the partners in the chain. In addition to the departments within the organization, these partners include vendors, carriers, third party companies, and information systems providers.

Within the organization, the supply chain refers to a wide range of functional areas. These include Supply Chain Management-related activities such as inbound and outbound transportation, warehousing, and inventory control. Sourcing, procurement, and supply management fall under the supply-chain umbrella, too. Forecasting, production planning and scheduling, order processing, and customer service all are part of the process as well.

Plastech Autosafe is the manufacturers of several parts and suppliers to many leading Auto companies of Pakistan and other different industries.

The product that we have chosen is Seat Belts that they manufacture for Indus Motor Company (IMC), Suzuki, Nissan, and etc. 30 parts are required for a single seat belt to be assembled here in the company which are either imported (maximum), locally manufactured, or purchased from local vendors.

1. Yearly planned schedules from customers are received and a 3 months tentative schedule.2. On the basis of the yearly forecast received monthly schedule is devised.3. Scheduling of Local and imported parts from vendors.4. Purchasing agreement is set with the local suppliers in accordance with the supplier quality,

responsiveness, cost, and other aspects.5. Monthly monitoring and inspection of supplier’s products and facilities.6. Imported suppliers are selected upon their global status.7. Monthly schedule is given to the local suppliers with 3 months tentative schedule.8. (n+1, n+2 or so on) strategy is followed for the international suppliers.9. Local vendors usually have 15 days of lead time hence safety stock of 15 days or accordingly is

kept10. Imported parts have a total time of (ETA-ETD) 45 days.11. Local suppliers bring the products directly to the warehouse.12. Imported items are received at the port and the clearing agents bring them to the facility.



4.1. SUPPLY CHAIN PROCESS:

A company becomes stronger when its supply chain is well equipped to meet every challenge Supply chain team of Plastech Autosafe ensure that goods reach their destination well in time.

4.1.1. PLAN: Plastech Autosafe believed that planning should be right and in efficient manner. The planning purpose of Plastech Autosafe is to achieve the target on time.

4.1.2. SOURCE: The main objective of Plastech Autosafe sourcing department is to work with quality suppliers. The department diligently picks and selects the quality material.

4.1.3. MAKE: The make process of SCOR model is referred to the production or manufacturing facilities. Plastech Autosafe is dedicated to ensure the consistency of product by using well equipped

production techniques.

4.1.4. DELIVER: The supply chain team ensure that the goods reach their destinations well in time to match

customer demand.

4.1.5. BUY: • In this last step, the product is delivering to the customer by itself. Plastech Autosafe always

satisfies their customers by providing them high quality products always on time.


Plan Source M ake Deliver Buy


4.2. PROCESS FLOW OF SEAT BELTS AT PLASTECH AUTOSAFE:


Planning for Raw Material Ordering (Scheduling Dept)

Production of Seat belts (Production)

Issuance of parts to production lines on daily basis (Warehouse Dept)

Receiving of Finished Goods from Production Line (Warehouse dept)

Issuances of Schedules to vendors (Purchasing Dept)

Receiving of parts from vendors (Warehouse Dept)

Production Planning on Monthly/Daily basis (Scheduling Dept)

Schedule Received from customers (Scheduling

Storage of Finished Goods (Warehouse Dept)

Dispatch to customers (Warehouse Dept)


4.3. INTERNAL SUPPLY CHAIN OF PLASTECH AUTOSAVE:


Delivery Received by Procurement

WarehouseMaterial/ parts to Production Floor

Assembly of Seat Belts Packaging of Seat Belts

End Customer

Finish Goods to Warehouse


4.4. DAILY PRODUCTION PLAN AT PLASTECH AUTOSAFE


Production Plan Generated on Oracle (ERP)

Receiving of Raw Material from Store

Production of seat belts through various processes


4.4.1. PRODUCTION SEAT BELTS BY VARIOUS PROCESSES:



4.5. PLSTECH AUTOSAFE NETWORK DESIGN:


Webbing+Wrapping(In house Process)

Stiching+Cutting

Assembling of Retractor (Import from China)

Assembling of Adjuster+Tongue+Buckle

Assembling of Stack Cable+End Bracket

Drilling on Metal Plate+Screwing

Attaching of Cover (Cover is prodced by Injection Moulding

Process)

Testing (Through Automated

Machine)

Inspection+Packaging Dispatch to the Store



SUPLIER

SUPPLIER [Local Parts]

SUPPLIER [Import Parts]

Procurement

Warehouse

Manufacturing

Storing after production

Warehouses

Customers

TOYOTA

SUZUKI

HONDA

HYUNDAI


5. RECOMMENDATIONS :

To improve efficiencies and minimize costs and inaccuracies, take advantage of technology such as RFID (Radio frequency identification), voice picking, mobility, warehouse automation systems and warehouse management systems

It is very important to review stocks tools positions on last day of each month and finally at the end of the year

Plastech Autosafe should effectively plan their inventory of every SKU in order to eliminate their

short fall in inventory and have 100 percent availability in the market when needed.

Inventory management is a very critical process for Plastech Autosafe and they should monitor

on regular basis and planned accordingly.

6. REFERENCES:

http://www.autosafe.com.pk/


http://www.autosafe.com.pk/

plastech autosafe

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